Technical Analysis › Trend Analysis
Trend Analysis
A trend is a sequence of higher highs and higher lows, or the inverse, a structural definition, not an impression. That definition matters because it also tells you precisely when the trend has stopped: the structure breaks. These guides cover identifying trend from swing structure, measuring its strength, and separating a retracement inside a trend from an actual reversal of it.
Direct Answer
A trend is a sequence of higher highs and higher lows, or the inverse, which makes it a structural definition rather than an impression. That definition also states precisely when the trend has stopped: the structure breaks, so an uptrend ends when price makes a lower high and then takes out the prior swing low. Anchoring to structure rather than to an indicator crossing is what gives you a specific invalidation level to place risk against.
When has a trend actually ended?
When the swing structure that defined it breaks, an uptrend ends when price makes a lower high and then takes out the prior swing low. Not when an indicator crosses, and not when the move feels extended. Anchoring to structure gives you a specific invalidation level to place risk against.
Every guide in this section
10 guides in this section.
All guides
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Downtrends Explained
A downtrend is a sustained sequence of lower highs and lower lows showing persistent selling pressure.
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Multi-Timeframe Trends Explained
Multi-timeframe trend analysis checks a market's direction on a higher chart interval before acting on a lower one, aligning trades with the dominant trend.
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Sideways Markets Explained
A sideways market is a range-bound period where price oscillates between support and resistance without a sustained up or down trend.
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Trend Confirmation Explained
Trend confirmation is using a second, independent signal to verify a trend before acting on it.
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Trend Exhaustion Explained
Trend exhaustion is when a rally or decline runs out of participation and momentum, often signaled by shrinking ranges, climax volume, and divergence.
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Trend Regime Classification Explained
Trend regime classification sorts price action into trending, ranging, or transitional states so traders can match strategy choice to current conditions.
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Trend Strength Explained
Trend strength measures how forcefully a trend is moving, using tools like ADX, moving average slope, and higher-high/higher-low structure.
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Trendline Breaks Explained
A trendline break is when price closes through a drawn trendline, signaling a potential shift in trend direction or momentum.
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Trendlines Explained
A trendline connects a series of price highs or lows to reveal the direction and slope of a trend.
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Uptrends Explained
An uptrend is a sustained pattern of higher highs and higher lows in price.